__________ Is the Risk That the Interest Rate Will Unexpectedly

question 61

Multiple Choice

__________ is the risk that the interest rate will unexpectedly change so that the costs of the liabilities of an FI exceed the earnings on its assets.

• A)Default risk
• B)Exchange rate risk
• C)Interest rate risk
• D)Liquidity risk

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Definitions:

Estimated Income Tax Payments

Payments made to the IRS on a quarterly basis by taxpayers who do not have their taxes withheld at source, to avoid underpayment penalties.

Fiscal Year-End

The end of a company's financial year, a critical date for accounting and financial reporting purposes.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and is taxed on its profits.

Dividends Received Deduction

A tax deduction that a corporation can claim for dividends received from other corporations within the same tax group.